The GBP continues its decline against its major peers, the US dollar and the Euro, into Friday after UK PM Boris Johnson cautioned that a no-deal Brexit appears to be a strong possibility despite numerous rounds of talks between Britain and the EU. At the time of writing, GBP/USD is trading around 1.331.

The British Cabinet supported Johnson’s statements when it stated that the current deal being proposed would keep Britain “locked in the EU’s regulatory orbit” and would not be right for the UK. A spokesperson for Johnson also stated that the government is increasing its efforts to prepare for a no-deal Brexit scenario, even though no details were forthcoming on Britain’s reaction to the EU’s contingency plans announced on Thursday.

According to Johnson, discussions between both sides are expected to continue, but with the December 31 deadline only a few days away and significant obstacles still remaining, securing a deal is looking increasingly unlikely. The Pound has experienced significant volatility over the past few sessions, reacting to every small development and announcement regarding the ongoing talks.

Even the EU alluded to a possibility of a no-deal Brexit after the European Commission President Ursula von der Leyen shared on Twitter, “Negotiations are still ongoing but the end of the transition is near. There is no guarantee that if & when an agreement is found it can enter into force on time. We have to be prepared including for not having a deal in place on 1 January.”